Araxi delivers resilient financial performance in software and payments

ARAXI Limited (previously Capital Appreciation) attracted new clients, secured long term contracts, diversified revenue sources and increased market share in the six months to September 30.

- EDWARD WEST

The JSE-listed company delivered a resilient performance amid ongoing low business confidence and sluggish economic growth.CEO Bradley Sacks said a "very healthy underlying performance" was masked by prior-period restatements, that increased prior-year headline earnings per share (HEPS) by 29%.

Current year profitability, with HEPS at 7.82 cents, nevertheless kept pace, and exceeded this growth, he said in an interview. The interim dividend was held steady at 4.5 cents a share.

This strong performance was evidenced by normalised EPS, which removes the largest once-off restatement, as well as onetime restructuring costs in Software, and indicates underlying EPS and HEPS increased by 59% and 58%, respectively. Asked about the second half outlook, Sacks said they were "very happy about the way the business is operating at present."

The Payments division delivered strong financial and operational results, benefiting from healthy terminal sales, substantial growth in terminal license fees and related services and expense management.

While terminal sales is becoming a hotly contested market in South Africa, the group was also benefiting from providing the software for the terminal hardware to other companies, said Sacks.